Rivian Begins Production of R2 Electric Vehicle at Illinois Plant
Customer deliveries expected later this spring; $58,000 launch model offers 330-mile range
Quick Look
- Rivian has started production of its new R2 all-electric vehicle at its Normal, Illinois plant, with customer deliveries scheduled for later this spring.
- The $58,000 launch model features a 330-mile range and dual motors, while a more affordable $45,000 version won't arrive until late 2027.
- The company aims to attract more buyers and achieve profitability with this less expensive EV, which resembles its flagship R1 SUV.
AI-generated summary
Why It Matters
Rivian has been developing the R2 as a more affordable alternative to its flagship R1 SUV, which starts at over $70,000. The company has faced pressure to achieve profitability and scale production. The R2 represents a critical step in Rivian's strategy to reach mass-market buyers.
Rivian Automotive on Wednesday said it has started production of its new R2 all-electric vehicle for customers at its plant in Normal, Illinois. The start of production is a crucial milestone for the company ahead of customer deliveries, which are scheduled for later this spring. Investors will be watching for the company to ramp up production for the foreseeable future. Rivian expects the R2 — an updated, less expensive EV that looks like its flagship R1 SUV — to attract more buyers and deliver on the company's promises to cut costs and become profitable in the years ahead. The first of the R2 midsize vehicles is a $58,000 performance model with a "Launch Package" that includes a 330-mile range, dual motors, special attributes and "lifetime" access to its Autonomy+ advanced driver-assistance system. Rivian has been touting a less expensive, entry-level version of the vehicle, starting at $45,000, but it said that model, which is expected to be less profitable, won't be available until late 2027. Its current vehicles start at more than $70,000. The R2 production announcement comes less than a week after a tornado damaged part of the company's plant being used for R2 parts storage and logistics. Rivian is scheduled to report its first-quarter results and update investors on R2 production on April 30.
What to Watch
AI outlook — possibilities, not facts
Rivian will provide specific R2 production numbers in April 30 earnings report
Likely · Within weeks
R2 deliveries will begin in late Q2 2026
Likely · Within months
Open Questions
- How many R2 units has Rivian produced so far?
- What is the exact extent of tornado damage and impact on production?
- When exactly will customer deliveries begin?
